The Biden-Harris administration is prioritizing small businesses in the latest round of Paycheck Protection Program loans. Since the round opened last month, the share of funding going to businesses with fewer than 10 employees is up nearly 60 percent. The share of funding going to businesses in rural areas is up nearly 30 percent and the share of funding distributed through community development financial institutions and minority depository institutions is up more than 40 percent.
To further ensure PPP funds are going to the businesses that need them most, the administration is instituting a 14-day period, beginning today, during which only businesses with fewer than 20 employees can apply for relief through the program. In addition, to help sole proprietors, independent contractors, and self-employed individuals, the administration will revise the loan calculation formula so that it offers more relief, as well as set aside $1 billion for businesses in this category without employees located in low- and moderate-income areas.
Other ways the administration is helping include eliminating exclusionary restrictions that prevent small business owners with prior non-fraud felony convictions or who are delinquent on their federal student loans from obtaining relief through PPP and ensuring access for non-citizen small business owners who are lawful U.S. residents.
Related: CA Relief Package Includes $2 Billion in Grants for Small Businesses; US Hospitality Industry Has Received Over $18 Billion in PPP Loans.